Bengaluru-based budget hotel chain Ruptub Solutions Private Limited, popularly known as Treebo, announced its revenues for the financial year 2017-18 reporting a jump of 130% in its revenues for the year.
According to the filings accessed via Tofler, the business intelligence platform for India, the company posted revenues of $6.45 Mn (INR 47.4 Cr), against $2.8 Mn (INR 20.56 Cr) in the previous year.
At the same time, the losses for the company were $15.67 Mn (INR 115 Cr), an increase of 56% compared to the previous year.
With a net worth of $21.67 Mn (INR 159.15 Cr), here are some key indicators of Treebo’s financial health:
- The company recorded operational revenues of $5.63 Mn(INR 41.35 Cr), a 130% jump from $2.45 Mn (INR 17.95 Cr)
- The company’s total expenses were $22.11 Mn (INR 162.37 Cr), against $12.8 Mn (INR 94.04 Cr) in the previous year
- Employee Benefit Expenses accounted for 41% of Treebo’s expenses at $9 Mn (INR 66.83 Cr) for the year
Treebo: Posing Challenge To OYO
Founded in June 2015 by Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain, Treebo Hotels is a technology-enabled budget hotel brand. At present, the company claims to have 10K rooms and 400 hotels in over 85 cities. It has so far raised $57 Mn in three rounds of funding.
Usually, it provides quality accommodation options to travellers in the $15-$46 (INR 1,000- INR 3,000) price range for a single night.
Here’s a quick update on Treebo’s new and expanding portfolio of services:
- Treebo launched its premium service for budget customers called Treebo Select, with plans to have nearly 40 properties in the top 20 cities of India in the premium segment by the end of 2018
- Launched Hero — aimed at tapping into traditional offline sales channels with a view to expanding its customer base and creating new avenues for sales
- Acquired online events discovery platform Events High to add to its services
At present, the hospitality industry has been witnessing an upsurge of tech startups, thanks largely to the increased penetration of the Internet and digital technologies. However, for Treebo, OYO Rooms remains its biggest competitor.
OYO India has over 125,000 rooms and is witnessing a 3x growth in transactions year-on-year with net take rates of over 20%.
Another major player against Treebo is FabHotels.The company, launched in 2014 by Adarsh Manpuria and Vaibhav Aggarwal, recently raised $25 Mn in Series B round of funding led by financial services firm Goldman Sachs.
With books keeping the company afloat in the competitive industry with an increasing portfolio, the company has a long way to go in beating unicorn OYO.